The SaaS finance library.
27 guides on revenue recognition, cash, the close, tax, entities and the raise, written for founders and the people who run their numbers.
ASC 606 for SaaS: The Five Steps, Applied to SubscriptionsHow the five-step model works for annual prepaid plans, multi-year deals, implementation fees and usage, and what your auditor will test first.
Burn Multiple: What It Measures and How to Calculate It RightNet burn divided by net new ARR: the capital-efficiency number investors check first, how to compute it from your books, and how to move it.
The SaaS Month-End Close ChecklistEvery step of an accrual close for a SaaS company, in order: cash, revenue, expenses, accruals, reconciliations, review and the finance pack.Revenue
ASC 606, deferred revenue, ARR and retention: the numbers a buyer or an auditor will rebuild.
ASC 606 for SaaS: The Five Steps, Applied to SubscriptionsHow the five-step model works for annual prepaid plans, multi-year deals, implementation fees and usage, and what your auditor will test first.
Capitalizing Sales Commissions Under ASC 340-40Which commissions are capitalized, how long to amortize them, the one-year practical expedient and the schedule auditors expect.
Implementation and Onboarding Fees Under ASC 606When a setup fee is a separate performance obligation, when it is combined with the subscription, and how to recognize it either way.
NRR and GRR: Calculating Retention the Way Investors DoNet and gross revenue retention, computed cohort-style from your ARR bridge, with the definition choices that change the answer by several points.
The ARR Bridge: New, Expansion, Contraction and Churn in One ViewHow to build an ARR or MRR bridge that ties to your billing data, what each bar should mean, and the definitions investors will check.
The Deferred Revenue Roll-Forward: How to Build It and Tie It OutThe one schedule that proves your revenue is right: opening balance, billings, recognition, closing balance, tied to the billing system every month.
Usage-Based Pricing: Revenue Recognition and ForecastingCommitments, overages, prepaid credits and true-ups: how consumption pricing is recognized under ASC 606 and how to forecast it without guessing.Cash
Burn, runway, margins and unit economics: what tells you how long you have and what each dollar buys.
Burn Multiple: What It Measures and How to Calculate It RightNet burn divided by net new ARR: the capital-efficiency number investors check first, how to compute it from your books, and how to move it.
Budget vs. Actuals: A Monthly Variance Review That Drives DecisionsHow to build an annual budget your ledger can be compared against, write variance commentary that matters, and reforecast without losing the plan.
CAC Payback: The Formula, the Inputs and the TrapsHow many months of gross profit it takes to earn back the cost of acquiring a customer, computed from the ledger rather than a marketing dashboard.
Runway and the 13-Week Cash Forecast: A Practical BuildRunway from a model you trust: a rolling 13-week direct cash forecast, the monthly operating model behind it, and the triggers that tell you to act.
SaaS Gross Margin: What Belongs in Cost of RevenueHosting, support, onboarding, payment fees and third-party software: how to classify cost of revenue so gross margin is right and comparable.Close
The monthly close, the ledger and the systems underneath it.
The SaaS Month-End Close ChecklistEvery step of an accrual close for a SaaS company, in order: cash, revenue, expenses, accruals, reconciliations, review and the finance pack.
Choosing an Accounting Platform for a SaaS CompanyQuickBooks Online, Xero, NetSuite, Sage Intacct or Zoho Books: how to choose by entity count, revenue complexity and audit needs, not by brand.
Prepaid Expenses and Accruals: Getting Expenses Into the Right MonthAnnual software contracts, insurance, unbilled contractor work and bonuses: the entries that make monthly expenses accurate, with a schedule for each.
Reconciling Payment Processor Payouts to RevenueWhy the deposit in your bank never equals your revenue, and the clearing-account method that ties gross charges, fees, refunds and disputes to every payout.Tax
Federal, state and sales tax for venture-backed C-corps, plus the credits SaaS companies leave behind.
The R&D Tax Credit for SaaS Companies (IRC §41)Which software work qualifies, how qualified research expenses are counted, the two credit methods, and the payroll tax election for early-stage companies.
1099s for Startups: Who Gets One, the New $2,000 Threshold and DeadlinesContractor reporting for SaaS companies: the threshold change for 2026 payments, W-9 collection, NEC versus MISC, and the January deadline.
Delaware Franchise Tax: Authorized Shares vs. Assumed Par ValueWhy a startup with 10 million authorized shares gets a five-figure bill, how the Assumed Par Value Capital method brings it down, and the March 1 deadline.
QSBS (Section 1202) for SaaS Founders After the 2025 ChangesQualified small business stock can exclude most or all of a founder's gain on a sale. What qualifies, what changed for stock issued after July 4, 2025, and what to document now.
Sales Tax Nexus for SaaS: Wayfair, Thresholds and TaxabilityEconomic nexus since Wayfair, how state thresholds work, why SaaS taxability varies by state, and how to fix exposure before diligence finds it.
Section 174 and 174A After 2025: Deducting Software Development AgainDomestic research costs are deductible again for tax years beginning after 2024, with a retroactive option for smaller companies. What changed and what to decide.Entities
Structures, consolidation, good standing and the compliance calendar across every entity you own.
Multi-Entity Consolidation and Intercompany AccountingFive LLCs, two corporations and a holding company: how to keep separate books, book intercompany correctly and produce one consolidated view every month.
Holding Company Structures for Founders With Several BusinessesWhen a holding company makes sense, the common structures, how cash and IP move between entities, and the accounting and tax each choice creates.Board & raise
Board packs, diligence, 409A, SAFEs, venture debt and the data room.
Series A Financial Diligence: What Investors Will Ask ForThe finance requests in a Series A diligence list, the issues that slow or reprice a deal, and how to have every answer in the data room before the term sheet.
409A Valuations: When You Need One and What Finance ProvidesWhy option strike prices need a 409A, the safe harbor, how long a valuation lasts, the events that refresh it, and the financial package the appraiser needs.
The Finance Pages of a SaaS Board DeckThe six finance pages every board meeting needs, what goes on each, and how to build them from the close so the deck is ready before the meeting.No guide matches that yet. Try another term, or ask us on a scope call.
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Revenue recognition, the close, cash, tax and board reporting, run by senior finance people in the accounting software you already use.